Tennessee attorney general Paul Summers sent a warning letter (PDF) to country music star Gretchen Wilson (“Redneck Woman”) demanding that she stop pulling a can of Skoal smokeless tobacco out of her pocket on the concert stage; she’d been waving the can to illustrate a song about the “Skoal ring” outline in the back pocket of a pair of jeans. Summers’s letter invoked the 1998 multistate tobacco settlement, although neither Wilson nor her concert venues ever signed that agreement or could be in any way bound by it; it went on to insinuate that Skoal’s manufacturer had procured her “promotion” of the product, an insinuation that turned out to be quite false, the singer’s representative explaining that she had had no dealings with the company. Nonetheless, perhaps fearful of suffering the fate of the much-boycotted Dixie Chicks, Wilson capitulated instantly and promised not to display the tin on stage any more, whereupon Summers expressed satisfaction (PDF) and called her a “good citizen”. Had the object of suppression been something other than tobacco, do you think by now we might have heard any outcry about artistic freedom or musicians’ rights of expression? (“Country singer Gretchen Wilson asked to keep smokeless tobacco in back pocket”, AP/CourtTV, Aug. 29; Gail Kerr, “Wilson put quick stop to spat over Skoal”, Aug. 31; CommonsBlog, Aug. 27; Nick Gillespie and Jacob Sullum, Reason “Hit and Run”, Aug. 29.) More: Will Wilson comments at the AEI Federalism Project’s AG Watch (Aug. 29).
Posts Tagged ‘tobacco settlement’
Tobacco do-re-mi
A further reminder just in case anyone’s still hazy on the nature of the fiscal partnership between government and cigarette-sellers ushered in by the 1998 state/tobacco settlement:
A sizeable boost in anticipated tobacco settlement funds for Steuben County could bolster a recent proposal to blacktop more than 10 miles of county roads.
County Administrator Mark Alger said Thursday the county will receive $6 million in new tobacco funds instead of the $792,000 to $1 million announced in late June. The new funds are due to a change in tobacco industry profits.
(Mary Perham, “County gets tobacco funds boost”, Corning (N.Y.) Leader, Sept. 9).
Multistate tobacco settlement
The Competitive Enterprise Institute is launching a legal action challenging it as unconstitutional, and also has put up a website on attorney general activism which assails the “Government-Tobacco Cartel” established by the settlement. (Alan Sayre, “Lawsuit: Deal has created tobacco cartel”, AP/Biloxi Sun-Herald, Aug. 3; press release/complaint in PDF format). We’ve been covering the story for years (see Feb. 15 and Jun. 3, 2005; Feb. 28 and May 11, 2004, etc., as well as Chapter 1 (“The Joy of Tobacco Fees”) of The Rule of Lawyers). More: and here’s a column by Jonathan Rauch (“Can A Little Lawsuit Shut Down A Big Tobacco Racket?”, National Journal, Aug. 5, will rotate off soon), on which Eugene Volokh’s readers comment.
Mississippi lawyer squabble
A reader characterizes:
I admit I get a perverse pleasure when I see the sharks feeding on each other. But this is just too good. Lawyer Luckey gets caught altering dates on asbestos claims, gets fired by Scruggs for altering the dates but then has the chutzpah to demand his cut of the contingency fee loot… and the judge gives it to him! I guess no one ever thought any disciplinary actions on anyone’s part was needed or indicated.
And it’s even sillier than that: the bulk of the damages appears to be for tobacco claims the partnership financed after Luckey was kicked out in 1993, triggering twelve years of litigation. Magistrate Judge Jerry Davis of the federal court in Oxford, Mississippi, awarded $13 million plus attorneys’ fees; the parties appear to have cut a deal so that there will be no appeal. (Leesha Faulkner (!), “Scruggs slapped with $13M settlement over partnership”, Northeast Mississippi Daily Journal, Jul. 22). More on Richard “Dickie” Scruggs: Jun. 15, Apr. 30. This appears to be the culmination of the fight that resulted in subpoenas to the Mississippi Supreme Court over Scruggs’s alleged influence there; at the time, Scruggs pooh-poohed the allegations, arguing that the dispute was only worth a few thousand dollars, and therefore not something worth risking improper influence over. (Jerry Mitchell, “Attorney testifies in justice probe”, Jackson Clarion-Ledger, May 17, 2003; “Lawyer, Former Colleagues Dispute Fees”, AP/Biloxi Herald, Mar. 27, 1998). Alwyn Luckey represents approximately 1500 Mississippi silicosis plaintiffs, so his troubles may not be over. (Updated from Jul. 23 post.)
State AGs versus smokers’ pocketbooks
AP takes a look at the relentless, money-driven efforts of state law enforcement officials and tobacco majors in league together to suppress competition from upstart cigarette-sellers, a story covered often on these columns (see Feb. 15, 2005; Feb. 28 and May 11, 2004, etc.) “‘It’s 46 state attorneys general, the 200 or so wealthiest trial lawyers in the world and the six largest tobacco companies against a bunch of very small businesses who are losing money,’ said Jeremy Bulow, an economics professor at Stanford University.” (Stephanie Stoughton, “Landmark tobacco settlement faces increasing challenges”, AP/Maryville (Tenn.) Daily Times, May 31).
N.Y. tobacco fee fracas
Attorney H. Neal Conolly quit the firm of Thuillez, Ford, Gold & Conolly shortly before it won the right to be part of the team of law firms representing the state of New York in the tobacco litigation. He argues, though, that having been involved in a “work in progress” he’s entitled to a share of the $84.3 million in fees payable to his former partners. “Six firms, including the politically connected Thuillez partnership, received a total of $625 million in fees for their role in negotiating the tobacco settlement. Thuillez Ford has had close ties to the Pataki administration and the administration of then New York Attorney General Dennis C. Vacco.” The fees work out to about $13,000 an hour. (John Caher, “Attorney’s Bid for Share of $84.3 Million Fee Moves Forward”, New York Law Journal, Jan. 12). More on N.Y. tobacco fees: see, among other posts, May 11-13, 2001, Jul. 30-31, 2002, and Aug. 10, 2003.
Gregoire the gregarious
Attorney General Christine Gregoire of Washington, a leading figure in brokering the 1998 tobacco settlement that ensured cartel-based profits for big tobacco companies and gigantic fees for the lawyers who sued them, is now in a close race for governor of the state. Very helpfully, she’s getting political contributions (via the Democratic Governors Association) from plaintiff’s-side lawyers such as Richard Scruggs, Joseph Rice and Steve Berman who were made exceedingly rich by the settlement, and who’ve given more than $1 million to the DGA in the space of a month. And another grateful contributor to the DGA is the lawyer who represented … Philip Morris. Isn’t it great when people can get along? (Ralph Thomas and Andrew Garber, “Out-of-state donors feed Gregoire fund”, Seattle Times, Oct. 28). For more, see Oct. 11, 2004, and Jul. 17 and Sept. 13-14, 2000.
Tobacco class action update
Plaintiffs defending the insane $10.1 billion class action judgment (Feb. 8; Mar. 24, 2003) have retained as co-counsel a law firm associated with a Republican Illinois Supreme Court justice in an effort to have him disqualified from the case. (Paul Hampel, St. Louis Post-Dispatch, “Smaller court may hear tobacco case in Madison County”, Oct. 3; Ameet Sachdev, “Philip Morris seeks removal of law firm”, Chicago Tribune, Sep. 1 (no longer online)). The Edwardsville Intelligencer (in a strange story whose math seems to be wrong in other particulars) reports that Madison County has received a $1.7 million windfall in interest from Philip Morris from the bond (Apr. 4, 2003) it posted to appeal that judgment. (Steve Horrell, “County is cashing in”, Oct. 8).
The Seattle Times has a retrospective look back at the comprehensive tobacco settlement (Feb. 28 and links therein) negotiated in large part by Washington state Attorney General Christine Gregoire, and notes the irony that it forced the state to ally itself with Philip Morris to protest the amount of the bond (see also Apr. 30, 2003). (Andrew Garber, “Tobacco settlement Gregoire negotiated not popular with all”, Oct. 4). But the bad news for Altria shareholders, states hoping to continue receiving tobacco funds, and the ability of Americans to conduct business is that plaintiffs continue to pile on with similarly meritless class action lawsuits, waiting to find the combination of judges who dislike tobacco companies enough to expand class action law rather than rule in their favor. Plaintiffs’ lawyers will bring dozens of these lawsuits, and need win only one multi-billion dollar judgment to become the new owners of the enterprise. The Massachusetts Supreme Court recently signed off on a class action against Philip Morris, and lower courts in Missouri and Ohio have followed suit. (AP, Sep. 17; Theo Emery, AP, Aug. 16).
Batch of reader letters
Four more entries from our correspondence stack on our letters page. Topics include: why autopsies don’t figure more prominently in malpractice cases, whether the legal climate deserves all the blame for the shrinkage in Philadelphia obstetrics, what happens when you tell your homeowners’ insurance company that you run a controversial website, and another lawsuit challenging the 1998 tobacco settlement.
Massachusetts tobacco fees: “Greed on Trial”
“The question before the jurors was not whether legal fees amounting to $7,700 an hour were ‘unreasonable.’ It was whether the lawyer-plaintiffs should get $1.3 billion more.” Detailed account of tobacco-fee buccaneering and the resulting courtroom antics (complete with “trained-seal” expert witnesses) in one state. When contemplating the tobacco crusade, the chief of litigation at Brown Rudnick said, “I had dollar signs in my eyes, even back at that early stage. And I know that they were large dollar signs.” (Alex Beam, The Atlantic, Jun.). For our coverage of Massachusetts tobacco fees, see Nov. 4 and links from there.